Eli Lilly CEO David Ricks recently discussed the impact of the company’s weight-loss drug Zepbound on patients’ eating habits, revealing that those taking the medication tend to consume about 800 fewer calories per day. This reduction in food intake, combined with increased physical activity and healthier food choices, results in weight loss. Zepbound, approved by the FDA in late 2023, belongs to a class of drugs known as GLP-1s that regulate blood sugar and suppress appetite. In a late-stage trial, adults taking the highest dose of Zepbound lost an average of 22.5% of their body weight. The drug shares its active ingredient with Eli Lilly’s Mounjaro, a treatment for type-2 diabetes. Analysts believe that this active ingredient could become the best-selling drug of all time, positioning Eli Lilly as a key player in the pharmaceutical industry.
Eli Lilly’s main competitor in the GLP-1 category is Novo Nordisk, which produces Ozempic for type-2 diabetes and Wegovy for obesity. These drugs also lead to weight loss and have gained popularity in recent years, with other companies such as Amgen and Roche developing similar treatments. Investors have seen significant gains in the stock prices of pharmaceutical companies manufacturing GLP-1s, but concerns have arisen about the potential impact on other industries, particularly food and beverage. Executives in these industries have observed changes in consumer behavior related to weight loss drugs, such as increased purchases of fresh foods, but the long-term effects remain uncertain.
The CEO of Walmart, Doug McMillon, has acknowledged the impact of weight-loss drugs on consumer behavior, noting a shift towards healthier food choices. However, the full extent of this shift and its lasting effects on the food industry are still unknown. Eli Lilly’s Ricks stated that while the impact of GLP-1s on businesses may not yet be widespread, as more people gain access to these medications, the influence will likely grow. Both Eli Lilly and Novo Nordisk are working to demonstrate the health benefits of GLP-1s beyond weight loss, with the goal of expanding insurance coverage for these drugs. Recent studies have shown that Zepbound can reduce the risk of type-2 diabetes and improve outcomes for people with heart failure, leading to positive stock performance for Eli Lilly.
As Eli Lilly continues to innovate and expand its portfolio of health-enhancing drugs, the market value of the company has surged, making it the most valuable healthcare company in the world. While the widespread adoption of GLP-1s may impact various industries, including food and beverage, the focus remains on improving health outcomes for individuals. With ongoing research and development efforts, Eli Lilly and other pharmaceutical companies aim to provide effective treatments for a range of health conditions, offering hope for patients seeking solutions to obesity, diabetes, and other chronic illnesses.
